|Day's Range||26,300.08 - 26,544.65|
|52 Week Range||24,896.87 - 30,280.12|
Later on Thursday, White House economic adviser provided another ray of hope when he said negotiations over the first phase of a trade agreement with China were coming down to the final stages, with the two sides in close contact.
(Bloomberg) -- Hong Kong protesters returned to the central financial district on Friday, the fifth-straight day of rallies in a broader democracy push that’s driven Asia’s premier financial hub toward recession.The Chinese President Xi Jinping said that bringing the violence to an end is Hong Kong’s “most urgent task,” while a scuffle involving the city’s justice secretary and the second protest-related death in a week heightened tensions. The rare comments by Xi during a visit to Brazil on Thursday came as the U.S. Senate moved to expedite passage of legislation that would support Hong Kong’s pro-democracy protesters.Earlier, a 70-year-old government contract worker who was struck during a brick-hurling fight between protesters and their opponents died of his injuries. Police classified the death as a murder.The protests, which have raged for more than five months, flared anew last week after the death of a student who fell near a police operation to clear a demonstration. A campaign to disrupt traffic has led to the shooting of a protester and citywide school cancellations, while Chief Executive Carrie Lam’s government has denied reports of a plan to institute an unprecedented curfew in a bid to quell unrest.Key developments:City’s No. 2 calls media briefing Protesters return to city’s streetsHong Kong justice minister hurt in LondonXi urges immediate end to violenceGovernment worker dies; 15-year-old still in hospitalSome trains services remain suspendedHere’s the latest (all times local):City’s No. 2 to brief media (5:06 p.m.) Hong Kong’s No. 2 official Matthew Cheung called a briefing for 6 p.m. Friday, as the city seeks to break free from the latest wave of protests. The chief secretary will be joined by Civil Service Secretary Joshua Law, Transport Secretary Frank Chan, Education Secretary Kevin Yeung and Constitutional and Mainland Affairs Secretary Patrick Nip. Protesters gather in Chater Garden (5 p.m.)Demonstrators began gathering again in Chater Garden in the city’s central financial district, after dispersing earlier following the arrival of riot cops. Police said they had arrested 58 people since Thursday. They fired 194 rounds of tear gas, 58 rubber bullets and 14 bean bag rounds.Overwhelming support for inquiry (4:45 p.m.)Some 80% of Hong Kong adults want the government to set up an independent commission of inquiry to examine the use of force by police throughout Hong Kong’s recent unrest, according to a new survey by Hong Kong Public Opinion Program. That’s up from 77% earlier this month.An inquiry is one of the five demands that protesters have been chanting about in marches throughout the city for months, but the government has so far ruled out any further political concessions.Hong Kong expects recession (4:30 p.m.)Hong Kong revised down its estimate for economic growth this year, with the government now forecasting the first annual contraction since the global financial crisis a decade ago. Gross domestic product will contract 1.3% in 2019 from the previous year, the government said Friday as it released final output calculations for the third quarter.The government said ending the city’s violent unrest is key to an economic recovery.Police classify death as murder (1:31 p.m.)Police upgraded their probe into the injury of a 70-year-old government worker to a murder investigation after the man died overnight. The man was struck in the head by an object during a scuffle Wednesday between protesters who had set up road blocks and others who were attempting to clear them.The man appeared to be filming in the direction of a group of black-clad protesters when one of them “deliberately threw” an object at him, Chan Tin-chu, senior superintendent for criminal investigations in New Territories North, told reporters at a briefing Friday. The victim didn’t participate in the argument or the attempt to clear the road blocks, Chan said.Protesters start lunchtime rallies (12:40 p.m.)Groups of protesters begin gathering in the financial district for a lunchtime rally, one of several planned across the city. Many wore masks and carried umbrellas.Protesters also began assembling in the bustling Causeway Bay shopping district and in Tai Koo, on the eastern side of Hong Kong Island.Chinese officials condemn attack (12:15 p.m.)The Chinese government raised strong objections to the U.K. consulate in Hong Kong regarding the attack on the city’s justice secretary in London on Thursday. The Office of the Commissioner of the Chinese Ministry of Foreign Affairs in Hong Kong also urged the U.K. government and police to punish those responsible for the attack on Teresa Cheng, according to a statement.Hurt 15-year-old still in hospital (8:56 a.m.)A 15-year-old boy who suffered a head injury from what local media said may have been a tear gas canister was still in Tuen Mun Hospital, the Hospital Authority said. The agency said the boy’s family asked that details of his condition -- which was originally listed as critical -- not be disclosed.Six people, ages 17 to 62, had been admitted to various hospitals for treatment for protest-related injuries overnight and this morning as of 7:30 a.m. All are in stable condition. The man shot by police in Sai Wan Ho on Monday is now in stable condition in Eastern Hospital. A man set on fire during an argument with protesters on the same day was still in critical condition at Prince of Wales Hospital.Group blames government for death (7:32 a.m.)A group of anonymous protesters that has occasionally spoken for the leaderless movement expressed “deepest condolences” for the death of a 70-year-old government worker Thursday, but blamed the incident on “police brutality” and government intransigence. “The HKSAR Government must concede to the Five Demands, and return to the table of politics to solve conflicts by political means,” the so-called Citizens’ Press Conference said in a statement Friday.Meanwhile, another protester group at the Chinese University of Hong Kong offered to remove barricades from the Tolo Highway in exchange for a government pledge to follow through with plans for District Council elections on Nov. 24, according to Radio Television Hong Kong. Students had already reopened one lane in each direction, the South China Morning Post said.Some trains still suspended (5:55 a.m.)Service between Fo Tan and Lo Wu and Lok Ma Chau on the East Rail Line are suspended due to vandalism, railway operator the MTR Corp. said Friday. Trains between Hung Hom and Fo Tan on the same line are running every five minutes. Stations at Mong Kok, Tseung Kwan O, Sai Wan Ho, Tuen Mun and Tung Chung also remain shut.Justice secretary ‘attacked’ (3:47 a.m.)Hong Kong Justice Secretary Teresa Cheng condemned what her office said was an attack by a “violent mob” that caused her “serious bodily harm” Thursday while she was on an official visit to London. Cheng fell and hurt her arm after being surrounded by a group of about 30 protesters, the South China Morning Post newspaper reported.“The secretary denounces all forms of violence and radicalism depriving others’ legitimate rights in the pretext of pursuing their political ideals, which would never be in the interest of Hong Kong and any civilized society,” Cheng’s office said in a statement.Agency ‘saddened’ by death (2:21 a.m.)Hong Kong’s Food and Environmental Hygiene Department confirmed that one of its contract workers had died Thursday from a head injury, expressing “profound sadness” over his death. The elderly worker “was suspected to be hit in his head by hard objects hurled by rioters during his lunch break,” the agency said in a statement, adding that it would provide assistance to the victim’s family.The government vowed to “make every effort to investigate the case to bring offenders to justice.”U.S. Senate advances bill (12:41 a.m.)The U.S. Senate is preparing for quick passage of legislation that would support pro-democracy protesters by placing Hong Kong’s special trading status with the U.S. under annual review. The Senate will run the “hotline” on the bill, which is an expedited process to check for last-minute opposition to bringing legislation immediately to a vote, according to Senator Marco Rubio, a Florida Republican.The Senate legislation is different than a version passed earlier by the House of Representatives. That means the two bills would have to be reconciled and passed by both chambers before going to President Donald Trump to be signed into law.Xi seeks end to violence (10:25 p.m. Thursday)Xi, currently on a visit to Brazil, said “continuing radical violent crimes in Hong Kong have seriously trampled on the rule of law and social order, seriously undermined Hong Kong’s prosperity and stability, and seriously challenged the bottom line of the ‘one country, two systems’ principle,” state broadcaster China Central Television reported in a social media post.“Stopping the violence and restoring order is Hong Kong’s most urgent task at present,” Xi said, reiterating support for Lam. “We will continue to firmly support the chief executive to lead the government of the Hong Kong Special Administrative Region in accordance with the law, firmly support the Hong Kong Police in law enforcement, and firmly support the Hong Kong judiciary in punishing violent criminals.”\--With assistance from Erin Roman, Daniel Flatley, Colin Keatinge and Dandan Li.To contact the reporters on this story: Iain Marlow in Hong Kong at firstname.lastname@example.org;Natalie Lung in Hong Kong at email@example.com;Dominic Lau in Hong Kong at firstname.lastname@example.orgTo contact the editor responsible for this story: Brendan Scott at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Happy Friday, traders!Today, protest disruptions have lessened, though an elderly man hit on the head with a brick has died and two others -- including the man set on fire and a 15-year old boy reportedly hit on the head by tear gas canisters -- remain in critical condition.Traders are going back into Hong Kong stocks, looking for bargains.We will keep you up on the latest news and moves in mainland and Hong Kong markets.Please help us improve our blog by taking this quick -- under 2 minutes! -- survey. Your feedback will really help us make the blog better for you!Also, if you would like the Live Stocks Blog emailed to you each morning, shoot Deb a message at firstname.lastname@example.org.\-- Zhang Shidong in Shanghai and Deb Price in Hong Kong Note: Information in this blog is on an "as is" basis and not a solicitation or offer to buy or sell any securities or otherwise; and is not investment/professional advice or services in this regard. It is subject to our T&C.; SCMP (as defined in T&C;) shall not be liable for any loss, damage and costs relating to any investments in securities or otherwise in this connection. This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.Morning guidance * Overnight markets/ What futures foretell\-- Overnight in US markets, the S&P; 500 gained 0.1 per cent, the Nasdaq fell less than 0.1 per cent, and the Dow Industrials was little changed\-- Hong Kong futures were 0.5 per cent higher, while the FTSE China A50 futures climbed 0.4 per cent* IPO debuts: Sinic Holdings (Group) (2103 HK), China Pengfei Group (3348 CH) and Best Linking Group Holdings (8617 HK) will start trading in Hong Kong today.Suntar Environmental Technology (688101 CH) and Novoray (688300 CH) will debut in the Start Board in Shanghai, while BSM Chemical (300796 CH) will begin its first day of trading in Shenzhen.* Economic statistics/Central Bank action: China's October home prices will be due at 9:30am today.*Corporate events: earnings, meetings, news conferences\-- nothing majorChina Merchants Securities boosts target price of Tencent, maintains 'buy' ratingTencent (700 HK) is getting a mixed report card after its profit and revenue misses on Wednesday after market close.Here are two new ones:China Merchants Securities (Hong Kong) increased the target price of Tencent to HK$422 from HK$392 and maintained a "buy" rating on the stock.Mizuho Securities USA reduced the target price to HK$325 from HK$335, and maintained its "neutral" rating.Tencent fell 2.3 per cent to HK$319.80 on Thursday after its results. Alibaba picks auspicious numbers for its Hong Kong listingAlibaba Group Holding has picked auspicious numbers for both its stock code and set the offer price for retail investors in its sale of new shares in Hong Kong, after receiving overwhelming response for the global tranche of its US$13.86 billion secondary listing, according to investment bankers and sources familiar with the plan.The shares will be offered at no more than HK$188 (US$24) each, according to sources, declining to be identified for discussing matters that have not been announced. This is 3.3 per cent higher than the November 12 closing price of Alibaba's New York-traded depositary receipts after allowing for a one-for-eight split, based on Alibaba's filing to the Securities and Exchange Commission on Tuesday.The stock's code on the Hong Kong stock exchange is 9988, which rhymes with "prosperity forever." The numbers eight and nine are considered auspicious in both Cantonese and Mandarin Chinese.Read full story here by Peggy Sito and Enoch Yiu EV maker BYD sees its US plans stuck as anti-China sentiment growsBYD - a Shenzhen-based electric vehicle maker whose name is short for Build Your Dreams - opened its US bus factory in Lancaster, California, in 2013. Six years later, those dreams risk becoming nightmares as anti-China sentiment in Washington grows.The way BYD (1211 HK; 002594 CH) sees it, it's been a model corporate citizen. It has invested US$250 million in a small American community; created 800 unionised manufacturing jobs; built environmentally friendly products; and followed "Buy America" requirements by sourcing 70 per cent of its components from US companies."If BYD was a Danish company, we'd be held up as an example of what the US wants us to do," said Zachary Kahn, the company's US director of government relations. "We've come in, manufacturing in the US for the benefit of union labour and the community.But the way critics see it, BYD is a tool of the Chinese Communist Party that's gaming a free-market system, poised to spy on bus riders and activate kill switches remotely to block intersections, spewing chaos.Read full story by Mark Magnier here. Hua Medicine says it is confident it will get marketing approval for diabetes drugHua Medicine (2552 HK), whose shares have shed more than 40 per cent this week after the interim clinical trial results of a diabetes drug did not meet investors' expectations, said it was confident of receiving marketing approval from Chinese regulators."The results were good ... [as] some investors are probably not well-informed of the trial requirements and the advantages of the drug over existing products on the market," chief financial officer George Lin Chien Cheng said on Thursday. "On top of that, they were concerned about the implications of [China's] ongoing price cutting of generic drugs via mandatory government hospital bulk tenders."Lin attributed the high reading to the fact that this was the first time that a novel diabetes drug has gone through phase three trial in China, where regulators have yet to set guidelines for such trials but have demanded that patients be subject to doctors' check-up every four weeks.The patients, mostly recruited from rural areas and who had not previously been prescribed diabetes drugs, were also told to watch their carbohydrate intake and encouraged to exercise more as diabetes patients are normally told.Read full story by Eric Ng here. Beijing-Shanghai High-Speed Railway operator's IPO gets green lightBeijing-Shanghai High-Speed Railway operator's initial public offering got the green light from China's top securities watchdog.The China Securities Regulation Commission said that it has approved the application of Beijing-Shanghai High-Speed Railway Company to float on the Shanghai Stock Exchange, according to a notice on November 14.The rail company will offer up to 7.557 billion shares, according to the filing, and all proceeds will be used to buy a 65 per cent stake of Beijing Fuzhou Railway Passenger Dedicated Line Anhui Company for 50 billion yuan in that would be the largest fundraising exercise on the mainland in more than nine years. In another words, China State Railway Group, which owns a 50 per cent stake in the high-speed operator through its investment arm, wants to use its share of the profits to shore up less profitable lines.Beijing-Shanghai High-Speed Railway, which operates the 1,300 km line, reported its net profit hit about 10.25 billion yuan in 2018, up more than 13 per cent from 2017, according to its prospectus on October 22.Tencent gains on rising Hang Seng The Hang Seng perked up this morning, rising 0.6 per cent to 26,492.76, after falling two straight days on escalating violence.Tencent (700 HK), Thursday's top loser with a decline of 2.3 per cent, rose 0.4 per cent to HK$321. The drop came after its third quarter revenue and profit missed estimates. A raft of new ratings have been coming out for the Chinese Internet giant. The other two heavyweights on the benchmark were mixed.AIA (1299 HK), the giant insurer and financial service provider, rose 1.3 per cent to HK$77.40, while HSBC (5 HK) dropped 0.9 per cent to HK$57.85.Apple supplier AAC Technologies (2018 HK) continued to rise, climbing 1.8 per cent to HK$51.20. It was the top percentage gainer on Thursday, rising 3.7 per cent to HK$50.30. Bank of Communications (3328 HK), whose Central branch's front window was smashed, on Wednesday, rose 0.2 per cent to HK$5.2.China's stocks drift lower at open, head for weekly lossThe Shanghai Composite Index slipped 0.1 per cent to 2,906.20 at the open today, extending its weekly loss to 2 per cent.Pig and chicken-breeding stocks such as Muyuan Foodstuff (002714 CH) and Shandong Minhe Animal Husbandry (002234 CH) led the decline on concern rising pork and chicken prices will deter consumers and hurt sales.\-- Zhang Shidong3 IPOs in Hong Kong start off flat Sinic Holdings (Group) Company Limited (2103 HK) and China PengFei Group Limited (3348 HK) started trading on the main board of Hong Kong Stock Exchange, and Best Linking Group Holdings Limited (8617 HK) debuted on the GEM board.Sinic's share price opened flat, at the offering price of HK$ 3.98. The shares were undersubscribed by 74 per cent.The property developer Sinic was ranked by the China Real Estate Index System as the 31st among the top 100 property developers in China in terms of comprehensive property development ability.Shares of China PengFei Group opened flat, at the offering price of HK$ 1.58. The shares were oversubscribed by 26.72 times.As the largest supplier of rotary kilns, which are used to produce industrial materials such as cement, lime and metals in China and globally, China PengFei Group had revenue in 2018 that accounted for 22 per cent of the Chinese market and 13.3 per cent of global market, according to a Frost & Sullivan market research report. Apart from rotary kilns, PengFei also provides tube mills, roller presses, vertical mills, separators, and ancillary machinery.Shares of Best Linking's share price also was flat, at the offering price of HK$ 0.55. The shares were oversubscribed by 61.67 times.Best Linking manufactures slewing ring, which is an essential component of large machinery for construction, wind engines, military, and robots. According to the Industry Report, it was ranked fifth among the slewing ring manufacturers in China in 2018 in terms of sales revenue to overseas markets, with a market share of 1.3 per cent.Sinic Holdings (Group) Company Limited (2103 HK) and China PengFei Group Limited (3348 HK) debut on the main board of Hong Kong stock exchange, and Best Linking Group Holdings Limited (8617 HK) debut on the GEM board today. @scmpbusiness @SCMPNews pic.twitter.com/NrzgH3hdEl\-- Snow Xia (@SnowXia05) November 15, 2019\-- Snow XiaStar board debutants surge in ShanghaiTwo listings surged on their first day of trading on the Science and Technology Innovation Board, or the Star market, in Shanghai today.Novoray (688300 CH), a maker of crystalline silica powder used in integrated circuits, surged by as much as 65 per cent from the IPO offer price before trading up 52 per cent recently to 41.50 yuan.Suntar Environmental Technology (688101 CH) jumped by as much as 40 per cent and the stock recently traded at 23.98 yuan, an increase of 31 per cent from the offer price.Meanwhile, BSM Chemical (300796 CH) rallied by 44 per cent to 20.52 yuan in Shenzhen.New listings on the Star market have no restrictions on daily price movements in the first week of trading, while those on the main board are subjected to a 44 per cent gain in debut and then can go up or down no more than 10 per cent in a day.\-- Zhang ShidongAAC Technologies jumps after announcing US-dollar denominated 'refinancing and development' plan AAC Technologies (2018 HK) jumped nearly 4 to HK$52.30 after announcing it will issue US dollar-denominated notes for "refinancing and development" of its business.It is the top gainer in morning trading on the Hang Seng Index.It is the second day of gains for the Apple supplier, which made its announcement this morning in an exchange filing.It was the top gainer Thursday on the Hang Seng Thursday, rising 3.7 per cent.BeiGene soars after lymphoma drug gets FDA accelerated approvalBeiGene (6160 HK) soared 7.7 per cent to HK$126.40 , after announcing its lymphoma drug Brukinsa has received accelerated approval by the US Food and Drug Administration."BRUKINSA is the first BeiGene-discovered product to be approved, an important milestone toward the Company's goal of transforming treatment for cancer patients around the world," BeiGene said in its announcement posted at the stock exchange.The drug is would treat mantle cell lymphoma (MCL) -- an aggressive blood cancer -- in adult patients who have received at least one prior therapy. "We are working to improve outcomes for people with cancer worldwide and this approval brings us closer to realizing our mission of bringing the highest quality therapies to patients globally," said John V. Oyler, chairman and co-founder, and CEO of BeiGene."The approval of BRUKINSA as a second line therapy represents an important advancement for the treatment of mantle cell lymphoma," said Meghan Gutierrez, CEO for the Lymphoma Research Foundation. "Expanded treatment options can transform the patient experience and provide hope to people living with a mantle cell diagnosis." Huobi Technologies continues its runHuobi Tech (1611 HK) continued its run in early trading, rising 3.2 per cent to HK$6.14.On Thursday, it announced in an exchange filing that its name has been officially changed from Pantronics.Since the Huobi cryptocurrency exchange announced on September 10 it would change the name of the Hong-listed Pantronics it acquired earlier, it has skyrocketed.Meanwhile, Singapore-based Grandshores Technology (1647 HK), which operates construction and blockchain business, fell 1.4 per cent to HK$73, giving up early gains in thin trading.Chinese pig-feeding stocks fizzleThe stellar run of China's pig-farming stocks seems to have run out of steam.They are leading the pack of decliners today, with Muyuan Foodstuff (002714 CH) and Hunan New Wellful (600975 CH) falling at least 3.5 per cent.Several theories could explain the reversal, from the release of more frozen pork into the market to demand being dented by high-flying prices.Pork prices registered second consecutive week-on-weekly declines as of last week, the Securities Times reported, citing the agricultural minister.Chicken-farming companies also fell: Shandong Yisheng Livestock and Poultry Breeding (002458 CH) and Shandong Minhe Animal Husbandry (002234 CH) retreated at least 4 per cent.\-- Deb PriceTencent sees two more lowered price targets Internet giant Tencent (700 HK) is being reevaluated by analysts, following its profit and revenue miss on Wednesday after market close.Here are a few of the latest:ABC International lowered its 12-month target price on Tencent to HK$328 from HK$360, while maintaining its "hold" rating.CCB International Securities trimmed its price target to HK$400 from HK$410, while keeping its "outperform" rating.Tencent has see-sawed in morning trading. It is now ahead 0.1 per cent to HK$320.20.Calm returns to China's marketsPrice swings on Chinese stocks, known for its wild volatility, are dropping.The 100-day volatility on the Shanghai Composite Index slipped to its lowest level since February 2018, while the 30-day gauge also dropped to that low, according to Bloomberg data.The Shanghai Composite has been stuck in a 100 plus-point range over the past two months, as stocks sway between the prospects of a trade deal and more policy easing and angst about the worsening economic outlook.The market may soon choose a direction to break the ice, according to Xun Yugen, a strategist at Haitong Securities in Shanghai.Stocks will trend up as earnings growth may have already troughed in the third quarter, he said.\-- Zhang ShidongTraders are bargain shopping among Hong Kong battered stocks, says analyst Alan LiTraders are doing some bargain hunting this morning, says Alan Li, portfolio manager at Atta Capital."Worry on curfew and cancellation of district election has been relieved. People are starting to bottom fish Hong Kong-related stocks," he said. "But it is not easy for the rebound to go further, as there is still uncertainty on protest action during weekend," he cautioned.Hua Medicine soars after reassurances by management about diabetes drugHua Medicine (2552 HK) rebounded 21.4 percent in morning trading to HK$5 after a 40 per cent plunge over the previous three days, after management said it was confident it will receive marketing approval for its diabetes drug from Chinese regulators.Investors were concerned about trial results that showed a high level for a placebo. The patients, mostly recruited from rural areas and who had not previously been prescribed diabetes drugs, were also told to watch their carbohydrate intake and encouraged to exercise more as diabetes patients are normally told, he said.Full story here on Li's presentation.\-- Eric Ng
Asian stocks jumped on Friday, lifted by White House comments that suggested the possibility of an imminent trade deal between Washington and Beijing, which revived hopes that their tariff war may be nearing an end. The buoyant mood looked set to extend to Europe, where pan-region Euro Stoxx 50 futures rose 0.57% to 3,705, German DAX futures climbed 0.53% to 13,253.5, and FTSE futures inched up 0.36% to 7,322. U.S. S&P 500 e-mini stock futures also rose, adding 0.35% to 3,107.8 after the S&P 500 index finished at a record closing high on Thursday.
Protesters blocked roads and metro lines were suspended for a fourth day in Hong Kong after police laid siege to a leading university, triggering an exodus of mainland Chinese students from the territory. In a statement, Beijing said “mob behaviour would not be tolerated”. ”, officers fired water cannon, tear gas and rubber bullets at students at the Chinese University of Hong Kong.
(Bloomberg) -- Hong Kong was left crippled for a fourth straight day, as protests paralyzed parts of the city and residents questioned how much longer they could endure the disruptions.The unrest on Thursday prompted companies to tell employees to work from home while some train lines were suspended, major events were canceled and public schools were closed through Sunday. Speculation spread about measures the government might take to stop the violence after Chief Executive Carrie Lam held a late-night meeting on Wednesday with top officials.The disruption of a complete work week marked an escalation in pro-democracy protests that started in June against a bill that would allow extraditions to China for the first time. The violence this week led to clashes in the main Central financial district and prompted several top universities to cancel or amend classes for the remainder of the semester.Markets were rattled Thursday after China’s state-run Global Times tweeted that Hong Kong was expected to impose a curfew for the weekend to curtail the violence. While the paper deleted its tweet not long after it was posted, the Hang Seng Index fell to its lowest close in a month.Pro-democracy lawmaker Claudia Mo called the report of a curfew “fake news,” while Lam’s office didn’t immediately respond to an emailed request for comment. Chief Superintendent Tse Chun-chung said the Hong Kong police weren’t in a position to comment on curfews as the authority to direct a curfew order rests with the chief executive.It’s unclear how effective a curfew would be at keeping protesters home and quelling the unrest -- and whether the police force has the manpower to fully enforce it. A face mask ban implemented last month using emergency powers failed to quell the unrest, and hasn’t been widely enforced.The city’s No. 2 official, Matthew Cheung, said Thursday that Lam’s late-night meeting had no specific purpose and was held later than usual to accommodate attendees’ busy schedules, Radio Television Hong Kong said. He said the government supplemented its police force with some 100 officers from the Hong Kong Correctional Services Department to serve as “special police” on a voluntary basis.Secretary for Security John Lee told the Legislative Council that Hong Kong hasn’t used army or police forces from mainland China but didn’t rule the option out. When asked to clarify the statement later, a spokeswoman for the security bureau didn’t address employing police from mainland China and referred to the earlier decision to appoint Hong Kong’s correctional officers.Citywide ClosuresMeanwhile, clashes persisted at universities in Hong Kong, with some schools in Sweden and the U.K. urging their students to come home. Police fired tear gas earlier Thursday near Hong Kong Polytechnic University in Kowloon, which said along with the University of Hong Kong that it would cancel most classes for the rest of the semester.“We don’t know when we can open the university again because of the traffic disruptions and damage to school property,” PolyU spokeswoman Eunice Ol Cheng said. “We understand that some foreign students will need to go home due to the current situation.”There was also a flurry of announcements for closures and cancellations of conferences, concerts and other events -- including a large industry airline conference hosted by Cathay Pacific Airways Ltd. That’s likely to further dent the city’s all-important tourism and retail sectors, which have already been hit by months of unrest.The value of Hong Kong’s retail sales tumbled 18% year-on-year in September, based on the latest official data available, while visitor numbers dropped 34%. The government is due to release final third-quarter economic data Friday afternoon, and a 2.9% contraction is expected.‘Very Worrisome’“What we are witnessing is very worrisome,” said Yiu Si-wing, a pro-establishment lawmaker from the tourism sector.Bystanders are getting caught in the fray, with a 10-month-old baby among the 67 people admitted to the hospital as a result of the clashes. On Wednesday, police arrested 224 people aged between 14 and 69, and fired 578 rounds of tear gas, Senior Superintendent Kong Wing-cheung said Thursday at a regular police briefing.“We kept asking the government to use political solutions to solve the problem, but they just used police confrontation and the result is that hatred has been accumulated to a level that it’s now hard to bring down,” said Ivan Choy, a politics professor from the Chinese University of Hong Kong. “I don’t see a way out.”\--With assistance from Will Davies, Blake Schmidt, Natalie Lung and Dominic Lau.To contact the reporters on this story: Shelly Banjo in Hong Kong at email@example.com;Iain Marlow in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Daniel Ten Kate at email@example.com, Karen LeighFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Anti-government protests in Hong Kong led to a decline by emerging-market stocks on Thursday, while the Turkish lira fell after President Tayyip Erdogan's visit to Washington did little to ease concerns about ties with the United States. The lira lost 0.5% as U.S. President Donald Trump described his meeting with Erdogan as "wonderful," but fell short of explaining how they would overcome such issues as Syria policy and Turkey's purchase of Russian defence systems.
Alibaba's planned $13.4 billion share sale will be Hong Kong's first paperless stock market listing, a source with knowledge of the matter said, breaking with a long-held tradition of investors placing stock orders in bank branches. Companies carrying out initial public offerings in Hong Kong have traditionally placed prospectuses in banks, which would often stay open late or over the weekend, and investors would fill out paper forms to place their stock orders. The decision by Alibaba to fully automate the retail subscription component of its deal comes as Hong Kong is gripped by violent civil unrest which has shut shops in the financial district and on Thursday led the government to close schools.
(Bloomberg) -- U.S. stocks edged higher, stalling below all-time highs as investors remained skittish about whether the U.S. and China will be able to hash out a partial trade deal. The dollar and Treasuries rose.The S&P 500 eked out its second straight gain, treading just under its record reached as part of a more than 7% rally since the start of October, fueled by trade hopes, waning recession fears and rate cuts. Tech shares gyrated after a report said farm purchases have become another of several issues in negotiations between the world’s two largest economies. The Dow Jones Industrial Average reached a record as Walt Disney Co. surged following the debut of its streaming service.The 10-year Treasury yield fell the most in more than a week, while the dollar rose for the seventh time in eight sessions to the highest in a month. The yen advanced along with gold. West Texas crude rose to $57 a barrel.“There was a mild optimism in the market today fueled by hopefulness about the consumer. On the other hand, the whole trade tariff thing doesn’t seem to be any closer to a resolution,” said John Carey, portfolio manager at Pioneer Investment Management Inc. “That uncertainty is still out there, but at this point people have gotten used to that uncertainty. A continued non-resolution isn’t a new negative, it’s just part of the landscape we’ve been watching.”The prospect of a deal between the world’s two biggest economies has become key to sustaining a rally that drove American stocks to records, as it appears the Fed will be on the sidelines for a long time. The U.S. and China have yet to announce a new location or time to seal the agreement after an international gathering in Chile was canceled, and it’s unclear whether Trump’s renewed threats will move things forward.Elsewhere, emerging-market shares fell as Hong Kong’s benchmark stocks gauge slumped as the city endured a third day of unrest. Japanese shares retreated along with those in South Korea and Australia. New Zealand’s dollar jumped after the country’s central bank unexpectedly kept interest rates unchanged.Here are some key events coming up this week:Earnings season is slowing. Reports are due this week from companies including Japan Post Bank, Walmart, and Cisco.U.S. CPI and earnings data Wednesday may provide more clues on the Fed’s policy pathThursday brings China retail sales and industrial production data.U.S. retail sales on Friday are forecast to rebound in October after unexpectedly falling the prior month.These are the main moves in markets:StocksThe S&P 500 Index rose 0.1% at 4 p.m. New York time.The Stoxx Europe 600 Index declined 0.3%.The U.K.‘s FTSE 100 Index declined 0.2%.The MSCI Emerging Market Index sank 1.2%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.1%.The euro was little changed at $1.1005.The British pound was little changed at $1.2838.The Japanese yen rose 0.2% to 108.84 per dollar.BondsThe yield on 10-year Treasuries sank five basis points to 1.88%.Britain’s 10-year yield dipped five basis points to 0.75%.Germany’s 10-year yield declined five basis points to -0.299%.Japan’s 10-year yield fell two basis points to -0.042%.CommoditiesWest Texas Intermediate crude rose 0.7% to $57.23 a barrel.Gold climbed 0.5% to $1,463.99 an ounce.\--With assistance from Robert Brand and Vildana Hajric.To contact the reporters on this story: Randall Jensen in New York at firstname.lastname@example.org;Claire Ballentine in New York at email@example.comTo contact the editor responsible for this story: Jeremy Herron at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Hong Kong's stocks fell to their lowest level in three weeks, with volatility increasing and discounts to the mainland's equities widening, as protests crippled the public transport service and led to a record number of bank branches to close.The Hang Seng Index slid 1.8 per cent, or 493.82 points, to 26,571.46 at the close on Wednesday, the lowest level since October 23.One bright note for the city's stock exchange was drowned out by the protest chaos: Alibaba, China's e-commerce giant listed in the US, has gotten approval to sell shares in Hong Kong in a secondary listing that will catapult the city back to the top of the world's IPO rankings.As anti-government protests rattled the city for a third straight day, a record 250 bank branches were closed on the day as a result of traffic paralysis, with one in five outlets of the 18 major banks including HSBC Holdings and Standard Chartered Bank being shut. The glass facade of the Bank of Communications branch in Central was smashed by bricks.Meanwhile, the Education Bureau announced that all schools including kindergarten, primary and secondary as well as special schools will suspend lessons on Thursday out of safety concerns. At least 80 mainland Chinese students were evacuated by police from the Chinese University of Hong Kong by bus.Hong Kong protests: at least three universities announce classes to be cancelled " with one closed until end of the monthConcerns about the strength of China's key October economic due tomorrow and the prospects of a trade deal between the US and the Asian nation also weighed on sentiment.Industrial product growth probably decelerated from a month earlier, according to the estimates in a Bloomberg survey. US President Donald Trump said in New York his administration will raise tariffs on China significantly should the first phase of a trade agreement not be struck.Protest chaos leads to the most bank branch closings in Hong Kong's history other than during typhoonsChina's Shanghai Composite Index slipped 0.3 per cent to 2,905.24, with insurance companies and brokerages pacing the decline."The uncertainty in Hong Kong is making investors uneasy as there is no clear end to the situation," said Gerry Alfonso, director of the international business department at Shenwan Hongyuan Group in Shanghai. "In this environment, making a long-term asset allocation plan is rather difficult and hence you see people moving into cash."The volatility index of the 30-day implied movements on the Hang Seng Index rose to a one-month high, while Hong Kong stocks traded at the biggest discount to mainland shares in almost two weeks, according to a measure tracking the price discrepancy of the two markets.Stocks Blog: Alibaba approved to list in Hong Kong; New World, Wharf, other property stocks fall amid protest chaos"Investors are very concerned about the Hong Kong economy," Kenny Wen, wealth management strategist at Everbright Sun Hung Kai in Hong Kong, said. "It is difficult to forecast coming developments. I strongly recommend investors to reduce exposure on those sectors that are highly correlated with the Hong Kong economy."All the 50 members but one on the Hang Seng Index dropped on Thursday, with property developers and banks being among the biggest decliners.New World Development, whose portfolio includes retail, and hotels and serviced flats, slid 4.9 per cent to HK$10.46 as the worst performer on the benchmark gauge. Wharf Real Estate Investment, which owns Harbour City in Tsim Sha Tsui and Times Square in Causeway Bay, dropped 3.7 per cent to HK$42.25.HSBC retreated 1.4 per cent to HK$58.25 and Bank of Communications lost 1.7 per cent to HK$5.27.Tencent Holdings, China's social media giant, slipped 0.9 per cent to HK$327.40 before the release of its third-quarter earnings.In the mainland, Shanghai Fengyuzhu Culture and Technology tumbled by the 10 per cent daily limit to 14.81 yuan after the company said chairman and general manager Li Hui was detained Tuesday by the Beijing police for suspected collusion in tendering.Additional reporting by Deb PriceThis article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
Hong Kong stocks extended their decline for the week to almost 4 per cent on Wednesday as violent clashes between protesters and police previously limited to weekends spilled onto the streets of the city’s central financial district, darkening investor sentiment. The Hang Seng index ended the day down 1.8 per cent, taking the equities benchmark down 3.9 per cent for the week.
Equity markets and government bond yields rose on Tuesday as investors awaited a speech by U.S. President Donald Trump on U.S. trade policy, in which he is expected to discuss talks with China and a tariff decision on European automakers. First, that there would be reassurances the China talks were progressing and second, that there would be a nod to overnight reports that a decision on European car tariffs would be delayed another six months. Overnight in Asia, MSCI's broadest measure of Asia-Pacific shares outside Japan climbed 0.5% while Japan's Nikkei ended 0.8% higher.
World shares and benchmark government bond yields inched higher on Tuesday, as investors awaited a speech by U.S. President Donald Trump on U.S. trade policy and an inevitable maelstrom of headlines. Firstly, that there would be reassurances that China talks were progressing, and secondly, that there would be a nod to overnight reports that a decision on European car tariffs would be delayed for another 6 months. Trade-sensitive chipmakers helped pushed Europe's STOXX 600 up 0.4% and U.S counterparts including Micron Technology, Nvidia and NXP rose between 0.6% and 0.9% in premarket New York trading.
Sell-offs in Hong Kong and China stocks had a respite, with both equity benchmarks rebounding from losses a day earlier, as traders awaited a set of key October economic data and shrugged off the latest violent anti-government protests in the city to shop for bargains.The Hang Seng Index added 0.5 per cent to 27,065.28 at the close on Tuesday. The city's equity benchmark slumped 2.6 per cent for the biggest decline in three months on Monday, as the protest, which entered its 23rd straight week, flared up again, bringing the financial district to a standstill.Protesters and police clashed at Chinese University on Tuesday, where a car was set on fire and tear gas volleyed, leading the institution to announce it will close for the third straight day on Wednesday. Meanwhile, a police spokesman said "society is on the verge of breakdown," as protesters upset MTR subway service and car traffic in their tactical shift to disruptions during the work week.Chinese University stand-off escalates with multiple volleys of tear gas fired by Hong Kong police, and car set on fire by protestersThe Shanghai Composite Index rose 0.2 per cent to 2,914.82 after falling 1.8 per cent a day earlier.Faltering economic outlook added to shaky sentiment. New loans in China slid to the lowest in almost two years last month, and the data on aggregate financing and money supply both trailed analysts' projections, according to an official report released by the central bank after the market closed on Monday.Earlier data from the government and industry associations showed that consumer inflation accelerated to the fast pace in seven years in October and auto sales dropped for the 16th consecutive month.China consumer prices jump to near 8-year high as pork soars more than 100 per cent"Stagflation is the primary concern on the market and inflation may be even high next month," said Wu Kan, an investment manager at Soochow Securities in Shanghai. "We are cautious about stocks and the market may remain in a weak mode until the end of the year."Traders will keep a close watch on a slew of key October economic data due on Thursday.Industrial output probably moderated to 5.4 per cent from 5.6 per cent in September, while growth in retail sales and fixed-asset investment may stay unchanged, according to the estimates in a Bloomberg survey.Apple AirPods craze spreads to China, becoming music to the ears of wireless-headset stock investorsTencent Holdings, the Chinese internet giant, gained 2.2 per cent to HK$330.20, snapping a three-day losing streak. The stock was the biggest contributor to the rebound on the Hang Seng Index on Tuesday, accounting for 40 per cent of the gain.The company is due to post its third-quarter result on Wednesday. Net income for the three-month period probably increased 6.3 per cent from a year earlier, according to the estimates of analysts in a Bloomberg poll.Developers edged lower on concern the unrest will hurt flat sales and rents at shopping malls.Wharf Real Estate Investment retreated 1.1 per cent to HK$43.85 and Link Reit slipped 0.8 per cent to HK$82.30.In the mainland, Sanan Optoelectronics, a maker of light-emitting diode products, surged 4.7 per cent to 15.23 yuan. The company said it plans to raise up to 7 billion yuan (US$1 billion) selling new shares to two buyers in a private stock placement to fund a semiconductor project. Changsha Pilot Investment Holdings Group, a unit under the Changsha municipal government, will buy the stocks for as much as 5 billion yuan and Gree Electric Appliances will take the remainder, according to an exchange statement.Zhangzidao Group, a sea-farming company based in the northeast province of Liaoning, plunged by the 10 per cent daily limit to 2.70 yuan, a record low since it began trading in Shenzhen in 2006. The company warned investors of an asset impairment loss because of massive death of scallops after a sample check conducted last week. The output may drop to about a tenth of the normal level and in some farming areas, more than 80 per cent of the scallops died, according to an exchange statement by Zhangzidao, without explaining the cause.Gree Electric Appliances, China's biggest manufacture of air conditioners, fell 3.3 per cent to 59.16 yuan, extending a drop of 3.8 per cent a day earlier. Its controlling state shareholder will postpone signing of a deal on the state sales of the listed company with a firm backed by Hillhouse Capital, Gree said in an exchange statement.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
Shares around the globe fell on Monday, buffeted by escalating violence in Hong Kong that pushed Asian stocks to their worst day since August and stoked demand for the safe-haven yen and gold. In the 24th straight week of pro-democracy unrest, Hong Kong police shot and wounded a protester as the Chinese-ruled territory saw rare working-hours violence. The MSCI world equity index, which tracks shares in 47 countries, slipped 0.2%, with Hong Kong's Hang Seng index falling 2.6% and leading losses across Asia.
Hong Kong's share index lost almost 3% as unrest in the Asian financial hub worsened on Monday, with police firing live rounds at anti-government protesters on the eastern side of island and firing tear gas at protesters in the Central business district. Investor sentiment suffered after a police officer shot and wounded one protester before trading commenced. The market had already been set for a shaky start after U.S. President Donald Trump said on Friday he has not agreed to roll back tariffs on Chinese goods as Beijing suggested last week.
Hong Kong's share index lost almost 3% as unrest in the Asian financial hub worsened on Monday, with police firing live rounds at anti-government protesters on the eastern side of island and firing tear gas at protesters in the Central business district. Investor sentiment suffered after a police officer shot and wounded one protester before trading commenced. The market had already been set for a shaky start after U.S. President Donald Trump said on Friday he has not agreed to roll back tariffs on Chinese goods as Beijing suggested last week.
Shares across the globe fell on Monday, buffeted by escalating violence in Hong Kong that pushed Asian stocks to their worst day since August and stoked demand for the safe-haven yen and gold. In the 24th straight week of pro-democracy unrest, Hong Kong police shot and wounded a protester as the Chinese-ruled territory saw rare working-hours violence. The MSCI world equity index, which tracks shares in 47 countries, slipped 0.2%, with Hong Kong's Hang Seng index falling 2.7% and leading losses across Asia.
Chinese e-commerce giant Alibaba set a new sales record on Singles Day, the world’s largest 24-hour shopping event. The S&P;/ASX 200 Index posted its highest closing price since August 1, the same week it reached an all-time high closing value of 6845.
Hong Kong stocks suffered their worst fall in three months on Monday, as anti-government protests turned into horrifying scenes, including a man being set on fire.A college-aged protester was shot and petrol bombs were thrown into a subway train with passengers in a day that spun from one shocking scene to another in a city long known for its safety and efficiency.The Hang Seng Index fell 2.6 per cent to 26,926.55, with only one of the 50 constituent stocks posting a gain. It had risen 8 per cent over the past month to close at 27,651.14 points on Friday, setting off technical warnings that it was in overbought territory.Meanwhile, with rumours circulating on social media, the city's government felt it necessary to say there were no plans to suspend stock market trading or impose restrictions on cash withdrawals from banks.China stocks also suffered losses, on fears of rising inflation as pork prices surge and scepticism that Washington and Beijing are making progress in solving their trade war that is partly to blame for China's slowing economy.No plans to close stock market or impose caps on cash withdrawals as Hong Kong government denies emergency law rumoursThe Shanghai Composite Index dropped 1.8 per cent to 2,910. That was its worst fall in four months, when on July 8 it fell 2.58 per cent. The Shenzhen Composite Index fell 2.26 per cent to 1,611.45. That was its worst fall since September 26, when it dropped 2.51 per cent."China and Hong Kong equity markets were perhaps lucky to have fallen only this far," said Brock Silvers, managing director of Adamas Asset Management in Hong Kong."Investors are realising that a trade deal may not be as close as thought. China's factories just reported lower prices for the fourth consecutive month as the slowdown deepens. And social instability in Hong Kong has reached a new peak today with multiple shootings and violence," he said.The three heavyweights on the Shanghai benchmark all closed with losses.The Industrial and Commercial Bank of China fell 1.7 per cent to 5.77 yuan, Kweichow Moutai dropped 0.5 per cent to 1,199 yuan, and the Agricultural Bank of China declined 1.7 per cent to 3.55 yuan.Apple AirPods craze spreads to China, becoming music to the ears of wireless-headset stock investorsGauges tracking sectors saw broad losses, with liquor stocks down 1 per cent, blockchain-linked stock falling 2 per cent and wireless headset makers slipping 0.3 per cent. Luxshare Precision Industry, the main assembler of AirPods " fell 0.8 per cent gain to 34.18 yuan.China's consumer prices rose to a near eight year high in October, the government reported over the weekend, climbing 3.8 per cent."We expect Chinese (Consumer Price Index) will rise to 4 or even 5 per cent before Chinese New Year," said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai.The losses in Hong Kong and China came even as Alibaba broke last year's Singles' Day record with 213.5 billion yuan worth of sales in 16.5 hours. (Alibaba is the parent company of the South China Morning Post.)Chinese consumers break last year's Singles' Day record with 213.5 billion yuan in 16.5 hoursIn Hong Kong, MTR fell 3.1 per cent to HK$43.65, as the city's subway owner and operator continues to see its shares hammered amid anti-government violence.The Hang Seng's three heavyweights all fell.Insurer and financial services provider AIA dropped 3.4 per cent to HK$79.60, HSBC slid 0.9 per cent to HK$59, while Tencent, the Chinese internet giant that reports third quarter results on Wednesday, lost 1.3 per cent to HK$323.Property stocks were big losers.Sun Hung Kai Property fell 4.3 per cent to HK$112, Wharf Real Estate Investment dropped 4.5 per cent to HK$44.35, New World Development tumbled 4.2 per cent to HK$11.02, while Swire Pacific fell 5.2 per cent HK$72.65."Hong Kong's escalating protests could pose serious threats to public safety and turn up the risks to developers' earnings with possible double-digit rental declines for both prime office and retail rents in 2020," Bloomberg Intelligence analysts wrote in a new note."Massive protests with tear gas fired by the police during lunchtime in the Central district could prompt some multinational tenants to spread their office space across Hong Kong, or even relocate portions of their workforces elsewhere in the Asia-Pacific region. Tenants' sales at prime shopping malls are likely to slump in 4Q given the increased number of violent attacks on retailers in various districts. The slump in visitor arrivals from mainland China following weeks of unrest will continue to crush hotel occupancy rates and retail leasing in major tourist districts," the analysts wrote.On the Hang Seng Index, only CSPC Pharmaceutical Group closed with gains, rising 0.5 per cent to HK$21.05.Among other stocks, CK Life Sciences was among the day's winners, picking up 2 per cent to HK$1.02 after sliding Friday following two days of more than 200 per cent gains on news of progress in clinical trials of its skin cancer vaccine.Beigene rose 1.8 per cent to HK$116.60. American biotech major Amgen agreed to buy BeiGene shares equivalent to a 20.5 per cent stake for US$2.7 billion, BeiGene said in an exchange filing on October 31.Louis Tse Ming-kwong, managing director of VC Asset Management, said the Hang Seng fell below its 250-day moving average."So there's plenty of chances of going down further," Tse said.Additional reporting by Snow XiaThis article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
(Bloomberg) -- Hong Kong stocks fell the most since early August as protests escalated after police shot and wounded a protester on Monday morning.The Hang Seng Index dropped 2.6%, with local landlords plummeting. Police fired tear gas in the center of the business district to disperse chanting office workers who were blocking roads. Signs that optimism over a potential U.S.-China trade deal has been overdone added to the bearish sentiment. The MSCI Hong Kong Index slumped 2.9% and the local dollar weakened.The abrupt drop in the city’s stocks -- the worst in Asia -- follows a half trillion dollar rally that drove a measure of buying momentum to its highest level in almost nine months and pushed the Hang Seng Index above its 200-day moving average.The shooting came as protesters called for a city-wide strike following the death of a student who fell from a parking garage amid a police dispersal operation. The city’s railway operator suspended parts of some lines amid mass vandalism and universities canceled classes. Police had earlier said two protesters were shot.“Hong Kong safety is now a big question,” said Jackson Wong, asset management director at Amber Hill Capital. “Some people are worried that today’s event would escalate the protest. There’s also conflicting messages from the U.S. and China over the trade deal. Last week people were pricing in a successful deal.”The local dollar fell 0.04% to 7.8334 per greenback after its best week since mid-September. That’s even as a gauge tracking the demand for cash jumped to the highest level since early 2016. The currency’s three-month forward points surged to 75.Concern is also rising that Hong Kong’s bleak economic situation has yet to fully filter through to its stocks. Faced with its worst business outlook since the 2008 financial crisis and a plunge into recession, a chill may be coming for Hong Kong’s corporate earnings. He Qi, a fund manager with Huatai Pinebridge Fund Management Co. who called the rally in mid-August, says he’s preparing to sell.“Hong Kong’s gains are just part of a global risk-on rally amid a flood of liquidity, and the short-term gains are way too strong,” said He.While President Donald Trump said late last week that trade talks with China were moving along “very nicely,” he added that reports about how much the U.S. was ready to roll back tariffs on China were “incorrect.” Those reports had helped fuel the risk-on rally that sent a gauge of global stocks to its highest level since early 2018.China’s largest brokerage Citic Securities Co. earlier this month trimmed its earnings growth forecast on the Hang Seng gauge to 4% this year from a previous estimate of as much as 8%. The continuing protests in the city and the impact on commercial property, retail and tourism industries has gone beyond expectations, strategists led by Yang Lingxiu wrote in a note dated Nov. 4.Swire Pacific Ltd. plunged 5.2% at the close. Wharf Real Estate Investment Co. sank 4.5%, and New World Development Co. lost 4.2%.City workers and tourists ran into shopping malls and office lobbies after riot police fired rounds of tear gas in the heart of the Central business district, just blocks from the stock exchange.The city’s stock market will remain open as usual, Hong Kong Exchanges & Clearing Ltd. spokesman Jeffrey Ng said in a email.To be sure, traders can still find opportunities in a market where many firms rely on the mainland for earnings. China’s A shares are about 28% more expensive than their Hong Kong listed peers, compared with a long-term average of 20%.The recession will likely make its presence felt in earnings for this year and in the first quarter of 2020, said Ken Chen, a Shanghai-based strategist with KGI Securities Co.“There’s no end in sight to the local unrest and expectations of an economic recovery next year remain low,” he said. “Hong Kong is just rising along with global markets, and the gains will pause when the global rally weakens.”\--With assistance from Cindy Wang, Jeanny Yu and Philip Glamann.To contact Bloomberg News staff for this story: Amanda Wang in Shanghai at email@example.comTo contact the editors responsible for this story: Sofia Horta e Costa at firstname.lastname@example.org, David WatkinsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Asian shares sank on Monday, the safe haven yen rose and gold jumped as fresh violence broke out in Hong Kong, while uncertainty still remained over whether the United States and China could end their damaging trade war. Hong Kong's Hang Seng index led the losses in Asia, down more than 2%, after police fired live rounds at protestors on the eastern side of Hong Kong island.
The dollar slid and global equity markets fell on Monday after U.S. President Donald Trump's remarks over the weekend suggested an end to the trade war with China was still not in sight, dashing recent investor optimism. Trump said on Saturday that the U.S.-Sino trade talks were moving along "very nicely" but more slowly than he would have liked. U.S. and Chinese officials last week said the two countries had agreed to roll back tariffs already in place in a "phase one" trade deal.